OA recently joined three of the Portland Maine area’s most prestigious specialty medical groups to form a new Independent Practice Association (IPA). The largest of its kind in Maine, the IPA represents over 250 physicians and other medical providers caring for patients in Southern Maine and across the entire state.
Popular in other parts of the country, an IPA consists of a network of physicians who agree to participate in an association to contract with health insurance companies and other payer organizations. Members of the Maine Specialty IPA will maintain their independent physician ownership structures and will seek to achieve cost efficiencies by sharing administrative services.
“This association will be a source of improved performance for our practices,” said Dr. Thomas Murray, OA surgeon and sports medicine specialist. “Additionally, the IPA becomes a potential vehicle for other independent medical groups wishing to collaborate and gain the benefits associated with further alignment of clinical and business best practices.”
In forming Maine Specialty IPA, the physician association is countering a trend towards hospital-based employment and away from independent practice. Economic pressures in the form of rising costs and lower payments for procedures have forced many private practice medical groups in Maine to give up their independence and to become employed by ever larger regional health organizations.
In the primary care area alone, approximately 2,000 Maine physicians are now employed in practices that are owned by hospitals or federally qualified health centers (FQHC), according to Gordon Smith, Executive Vice President of the Maine Medical Association. This means that approximately 70% of all medical doctors in Maine are in an employment relationship with a hospital, health center or FQHCs, whereas 10 years ago that number was less than 15%. On the specialty side, about half of the specialists now have such an employment arrangement, whereas only a small number of specialty physicians were employed by hospitals ten years ago.
Members of the newly formed IPA believe that by combining their resources, they can be effective in providing physician-led solutions to the challenges facing Maine and the nation as it relates to the delivery and financing of healthcare services.
“This collaboration will enable our physicians to work more closely together to improve the coordination of patient care, address cost issues in healthcare, and promote strong, independent physician practices,” said Dr. Daniel Landry, President of Spectrum Medical Group.
Other medical practices have approached the association, which is limited initially to the founding members, which include Chest Medicine Associates, Portland Gastroenterology Associates, Spectrum Medical Group and OA Centers for Orthopaedics.